Euro Technical Major Currencies (2011-07-28)

By IBT Staff Reporter On 07/28/11 AT 3:27 AM

Morning Report

The red arrow shown above on the chart explains yesterday's bearish candle which closed below 1.4490 and confirmed the bearish bat harmonic pattern. The pair then reversed to the downside towards the first target of the harmonic pattern at 1.4335 which represents 38.2% Fibonacci correction of the CD leg. Stochastic is within oversold areas, which may cause heavy fluctuations, but on the other hand, stability below 1.4415 with 4-hour closing could support the pair to breach 1.4335 to extend the downside move towards the minor support at 1.4275 then the second target of the harmonic pattern at 1.4215.

The trading range for today is among the major support at 1.4125 and the major resistance at 1.4535

The short-term trend is to the upside with steady daily closing above 1.2795 targeting 1.5135.

Previous Report

Weekly Report

Support

1.4335

1.4275

1.4215

1.4165

1.4125

Resistance

1.4400

1.4460

1.4490

1.4515

1.4565

Recommendation

Based on the charts and explanations above we recommend selling the pair around 1.4400 and take profit in stages at (1.4335, 1.4275 and 1.4215) and stop loss with 4-hour closing above 1.4515 might be appropriate.